Welcome to our MG EV Novated Leasing
All MG vehicles below can be Salary Packaged 100% Tax-Free on a Novated Lease. Click on any of the vehicles below to get more detail and useful links. We’ll update this list as soon as more models become available.
Below the calculator is all the information you’ll need to know on owning and leasing an MG with Vehicle Solutions.
For more information talk to one of our EV specialist novated lease team members.
Who is MG and where do the EV’s now come from?
MG has made significant strides in the electric vehicle (EV) market, contributing to the industry’s transformation and making its own mark in the history of electric cars.
In 2019, MG launched the MG ZS EV, an all-electric compact SUV, which quickly gained attention for its affordability and impressive range. The MG ZS EV became one of the most affordable electric cars in many markets, offering a practical and accessible option for people looking to transition to electric mobility.
The success of the MG ZS EV paved the way for MG to further expand its electric vehicle lineup. In 2020, MG introduced the MG5 EV, an electric station wagon, offering more versatility and cargo space for those seeking an electric vehicle with a larger capacity. The MG5 EV has received positive reviews for its range, performance, and value for money.
Another significant milestone for MG came with the launch of the MG Marvel R Electric in 2021. The Marvel R Electric is an all-electric SUV boasting cutting-edge technology, high-performance capabilities, and a luxurious interior. It showcases MG’s commitment to pushing boundaries in the EV market and providing customers with advanced features and an exceptional driving experience.
MG has been praised for its strategy of offering electric vehicles at competitive prices, making electric mobility more accessible to a wider range of consumers. By combining affordable pricing with decent range and features, MG has managed to attract a significant customer base and contribute to the increasing adoption of electric vehicles globally.
Furthermore, MG has been actively expanding its presence in various markets, including Europe, Asia, and Australia, with plans to introduce more electric models in the coming years. The company’s focus on electric vehicles aligns with the growing demand for sustainable transportation and this indicates its dedication to changing the way people move in the future.
MG ZS EV
The MG ZS EV is an electric vehicle (EV) manufactured by the Chinese-owned British automotive brand MG Motor. It is an all-electric compact SUV that combines zero-emission driving and practicality. Here are some key features and information about the MG ZS EV:
Electric Range: The MG ZS EV offers a respectable electric range, typically around 263 kilometers on a full charge. The range can differ based on factors like driving conditions, temperature, and usage of electrical features.
Performance: The MG ZS EV features an electric motor that delivers 105 kW (141 horsepower) and 353 Nm of torque. It offers smooth and responsive acceleration, making it suitable for city driving and highway cruising.
Safety: The MG ZS EV is equipped with safety features like multiple airbags, anti-lock braking system (ABS), electronic stability program (ESP), rearview camera, parking sensors, and tire pressure monitoring system (TPMS).
Warranty and Maintenance: The MG ZS EV typically comes with a warranty package that covers the electric vehicle components, including the battery, for a certain period or mileage. It’s recommended to check with the specific dealership or manufacturer for the warranty details and maintenance requirements.
Please refer to the Australian MG website for more updated and detailed information on this Model.
Information about our EV Novated Lease Calculator
New government legislation aims to use Novated Leasing to make EV’s as affordable as possible. However the main question still needs to be answered, “What is this car going to cost me out of my take home pay?”. A good Novated Lease calculator will provide this information up front. Vehicle Solutions Novated Lease calculator tells you in seconds the cost to your take home pay for any vehicle value you enter up to the FBT exempt amount of $84,916.
But what does all this mean?
When looking at any Novated Lease calculator it is important to understand what is included and importantly what is not included. On a Novated Lease calculator the provider can change the way fuel/charge, tyres and scheduled services are calculated which will reduce the amount allocated to the running costs to make their quotes look cheaper, but in the end you could be paying a lot more. It is very important to understand what is in each of the running cost budgets and how they are calculated.
The Calculations
Charge Allocation (Was the old fashioned fuel)
In our Novated Lease calculator we have included an allocation of $750 per year for charging your vehicle. This can be changed prior to starting the lease or at any point during the lease term depending on usage.
Tyres
In a Novated Lease calculator a tyre budget is a little harder to estimate simple because tyre prices can vary so much depending on the type of tyre the driver wants, for example a lower profile tyre maybe more expensive, but important to the vehicle driver. In our Novated Lease calculator we research an average cost for each of the vehicle categories we use. We simple apply this cost to an average tyre change time period and the budget is set.
(Average cost of a tyre X 4) = Cost of a set of tyres.
Your annual kms travelled X the lease term in years = Total KMs
Total KMs/35,000kms (average tyre change period) = Sets of tyres required.
Sets of tyres required X Cost of the set / years of lease = Total tyre budget per year.
Example – Mary drives 15,000kms per year and is about to start a 5 year lease. The cost of a set of her tyres is $850.
15,000 X 5 = 75,000kms /35000 = 2.14 sets of tyres X $850 per set = $1,819/5 years = $363.80 per year.
Maintenance
Most cars need a service every 10,000 to 15,000km and the cost of this service depends on the type of vehicle you choose. However EV’s in general require less serving so we have set an allocation of $350 per year.
Registration and Insurance
For registration and insurance renewals we use an estimate again depending on the type of vehicle chosen.
Finance
The finance is on a standard novated lease calculation with a few small variations.
- The lease is two months in arrears. This means that the payments for the first two months are $0.00. These payments are spread over the balance of the lease term. For example if you are wanting to take a 5 year (60 month) lease then there will be 60 payments, however the 1st and 2nd month will be $0.00 and then 58 payments of $400 for example. This structure allows the Salary Packaging company such as Vehicle Solutions Australia to establish the service including the payroll deductions and collect several deductions prior to the first real payment is due.
- The first years Comprehensive Car Insurance can be financed if required. This means that you never have to come up with the cash for your insurance. When the insurance fall due again in 12 months simple send in the renewal and the Salary Packaging provider can pay this out of the funds in your Novated Lease account.
Residual Value
There is always a lot of talk about the balloon payment that falls due at the end of your lease. This is call the residual value or the final value (for tax purposes). The ATO allow you to pay for your car through your employer. This arrangement saves you take and is very convenient to run. However for tax purposes only, because your employer is paying for the car from money deducted from your salary you can’t get any equity in this vehicle. That means it needs to be paid back to a realistic market value at the end of the lease.
GOOD NEWS! Because there is a residual value at the end, your repayments are cheaper during the lease term. Most people use these cheap finance payments to get into a more expensive car.
The residual value is a ATO set percentage based on the lease term, but has a buffer of approximately 5% either side of required rates. Please read a more details article and view the ATO set percentages by clicking HERE.
Loan or Lease
For most people buying a car means they need some form of finance. One of the most common questions is wouldn’t I be better off putting the car on a normal car loan? To get a true comparison of the difference between a loan and a lease please read our article by clicking HERE.
Finance Approval Conditions
After you have finished used our Novated Lease Calculator and being happy that you can afford the deduction from your salary the next step is getting the finance or lease approved. In general getting a Novated lease approved is a little easier than normal finance. The reason for this is simply because the financier is getting the repayments directly from your employer before you even get taxed. This gives the financier more confidence that their loan is going to be repaid.
To get a pre-approval started click HERE. The pre-approved will provide you with an approval in principle on the vehicle you choose. This approval is not binding and we never put any pressure on you to use this approval. The approval will provide you with a better negotiating position in the vehicle purchase. People who are ready to buy and have the funds in place can request a cash price for immediate delivery.
We hope that you have found both our Novated Lease Calculator and information on each aspect of the calculator helpful.
However if you have any questions regarding the numbers or would like to discuss the process please feel free to call us during office hours on 1300 990 880 or click the button below to send us an enquire form.